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An amendment to the 2012 Defense Authorization Bill, passed by the Senate last week, caps taxpayer-funded compensation for all contracting employees at $400,000. Senate sponsors of the measure say the measure is designed to head off burgeoning defense contractor salaries. Federal employee unions have applauded the bill, but it has drawn the ire of industry groups. The Senate version of the defense bill, which contains controversial provisions dealing with military detainees, must still be reconciled with a House version before becoming law.

The cap does not go far enough. The $400K limit should be the highest contractor pay can go for the CEO only. Everyone else should as the government be limited to the actual dollar limit of the top federal pay scale, oh by the way that includes pay freezes. I mean no one should have a problem with that right? Since government employees are all over paid to begin with, limiting contractor pay to those "inflated" rates shouldn't cause any pain at all.